Ceramics Industry Debate

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Yvonne Fovargue

Main Page: Yvonne Fovargue (Labour - Makerfield)
Tuesday 8th March 2016

(8 years, 2 months ago)

Westminster Hall
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Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) on obtaining this debate and speaking so passionately about the importance of the ceramics industry to his constituency. The UK ceramics industry has a proud heritage in the area, as so eloquently described by my hon. Friend, but it is also in the vanguard of novel material development and advanced manufacturing. Some of Britain’s most iconic brands have been, and still are, found in the ceramics industry—I hope that my hon. Friends will not fight about which ones came first. However, as we have heard, the full growth potential of the industry is not being achieved, as a combination of policies is undermining investment, trade, growth and jobs.

The British Ceramic Confederation launched the EARTH campaign in January this year, with five asks of the Minister, to ensure the level playing field that we have heard so much about and secure thousands of jobs in the UK ceramics industry. I thank my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) for taking up the baton and forming an all-party group for this industry.

The confederation’s first ask is on the EU emissions trading scheme. A tiered approach to the next phase of the EU ETS will not help this industry, as only a few energy-intensive industries will benefit at the expense of others. Indeed, the Department of Energy and Climate Change paper co-authored with other member states understates the effect of the tiered approach on the ceramics industry by using the floor and wall tiles sector as a proxy for the whole industry, which underplays how unfavourable a position the heavy clay subsector would be in should that be adopted. What discussions has the Minister had with her colleagues in DECC regarding that issue?

Secondly, the industry asks for action on the cumulative cost of compliance. There is a package of renewable compensation measures for electro-intensive industries, but—due to the design of the scheme—only a handful of confederation members will receive any compensation. In fact, as we have heard, only seven members are likely to be compensated in the United Kingdom—none of which are in Stoke-on-Trent North—compared with more than 100 in Germany and 140 in Italy. Will the Minister look again at the design of the scheme?

The third ask is to reduce carbon emissions through a long-term industrial policy. The British Ceramic Confederation is working with partners, including academics and the Knowledge Transfer Network, to share good practice and inform Government policy. I also hope that the catapult centre will take root in Stoke-on-Trent, as we need more of those centres outside the M25 corridor.

As we heard from the hon. Member for St Austell and Newquay (Steve Double), China’s dumping is already causing a problem with trade, but it is now applying for market economy status. My hon. Friend the Member for Stoke-on-Trent North spoke knowledgeably and passionately about the problems that that would cause. Although trade is an EU matter, the Government are influential. Surely the matter would be better decided through the World Trade Organisation. What is the Minister’s view on that? How will she ensure that any granting of MES with exemptions will not lead to problems similar to those already being faced by other industries—for example, the steel industry, for which my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) is a doughty campaigner?

I turn finally to housing. Joined-up working is needed to ensure that quality British products are used in the housing sector and that the opportunity is spread to all sections of it. How will the Minister engage with the industry to ensure that that is the case? Indeed, I hope that the people inside the houses will be turning over their pots to make sure that they are British-made; I hope that the Department for Business, Innovation and Skills will do so as well.

More than 20,000 people are employed in the ceramics industry, which pays £500 million a year in wages and national insurance. More than that, it is in the DNA of Stoke and the surrounding area. The Government must act now to protect this historic yet forward-thinking industry.